RESOLUTION OF PARLIAMENT TO AUTHORIZE THE MINISTER OF FINANCE TO GUARANTEE BORROWING BY ST. JUDE HOSPITAL – SECTION 65(1)
Commencement [20 March 2023]
RESOLUTION
WHEREAS it is provided under section 65(1) of the Public Finance Management Act, (the Act) that the Minister of Finance may, by an affirmative Resolution of Parliament, grant a guarantee in accordance with an enactment;
AND WHEREAS it is further provided under section 69(2) of the Act that a guarantee issued by the Government or a contingent liability created by the Government in accordance with the Regulations under the Act, and in accordance with another enactment shall be charged on and paid out of the Consolidated Fund;
AND WHEREAS it is provided under section 20A(1) of the St. Jude Hospital Act, that the Minister of Finance may, with the approval of Parliament, guarantee in the manner and on conditions as he or she thinks fit, the payments of the principal and interest of an authorized borrowing by the Hospital;
AND WHEREAS it is further provided under section 20A(2) of the St. Jude Hospital Act, that where the Minister of Finance is satisfied that there has been default in the payment of principal money or interest guaranteed, he or she shall direct the repayment out of the Consolidated Fund for the amount in respect of which there has been a default;
AND WHEREAS the Minister of Finance considers it necessary to guarantee an overdraft facility in the amount of EC$3,500,000.00 from the Republic Bank (Eastern Caribbean) Limited (the Bank) to the St. Jude Hospital for the purpose of assisting with working capital requirements;
AND WHEREAS the repayment of the advances are on demand;
AND WHEREAS the interest is payable monthly at the Bank's Base Lending Rate from time to time less 4% per annum with a present effective rate of 6% per annum;
AND WHEREAS a commitment fee of $5,000 is payable on acceptance of the commitment letter;
BE IT RESOLVED that Parliament authorizes the Minister of Finance to guarantee an overdraft facility in the amount of EC$3,500,000.00 from the Republic Bank (Eastern Caribbean) Limited to the St. Jude Hospital for the purpose of assisting with working capital requirements;
BE IT FURTHER RESOLVED that —
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(a) the repayment of the advances are on demand;
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(b) the interest is payable monthly at the Bank's Base Lending Rate from time to time less 4% per annum with a present effective rate of 6% per annum;
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(c) a commitment fee of $5,000 is payable on acceptance of the commitment letter.